Shipping containers in short supply

Hanjin Shipping Korea’s largest shipping company is reviewing its plan to place new orders for shipping containers as the amount of containers used has increased recently. Such move comes as the rapidly restoring market conditions for container shipping has led to a lack of shipping-container boxes. Hanjin currently is in possession of 400,000 containers, owning 65% of them independently and leasing the remaining 35%.

According to the industry lately, domestic shipping companies are having difficulties securing available shipping-container boxes due to the currently increased trade volume. It is estimated that about 2.5 to three million container boxes fall short of global demand. Not only Hanjin but also other global shipping companies face the same situation.

The scarcity of shipping containers stems from the huge slash in production last year. As the shipping market deteriorated, the year-on-year orders barely reached 10% last year, leading to the current supply and demand crisis

On the other hand, as container ships ordered before the global financial crisis are finally being delivered in great numbers and idle ships resume sailing, the competition for getting fiercer.

The competition has sent the prices much higher. The price of a 20-feet container box is now twice the price last year.

Such fierce atmosphere seems to continue up until the third quarter. The shortage of shipping-containers will inevitably aggravate since the third quarter is the traditional high season in terms of trade volume.

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